The enigmatic island of Cyprus has taken the spot light for the wrong reason. The financial paradise is turning into a nightmare. A meeting in Brussels is underway to finally agree on the terms of the bailout.
There has been a lot of speculation above Cyprus trying to out muscle the Euro-Zone terms but it is surely another political exercise to make the financial markets around the world a bit interesting. Who would really believe that Cyprus would chose to collapse rather than comply blindly with the terms. Greece, Portugal and Ireland have done it. Cyprus has not chance.
Anyway, putting Cyprus aside what else is there? The Australian stock exchange is about to open. It is quite interesting that the market finished last Friday gaining 58 points or so.
Many of the ASX indexed major companies such as Rio Tinto, BHP, Macquarie Group, Leighton and Wesfarmers are in a bearish momentum. No so is the Banking sector, still offering a glance of positivity.
But with such amount of companies ready to go into a correction and with technical indicators signalling to an eventual pull back, there is little doubt that the ASX would lose some ground this week.
Wall Street is lower by only 17 points. The ASX 5000 mark will remain as a target, at least for now.
In the other hand, the ASX can still turn higher, even though the chances are small. Chinese companies are going to have a busy week with the earning releases. It would be interesting to see what comes out from there.